PTA abolishes tax on International calls

The Pakistan Telecommunication Authority (PTA) on Tuesday announced to abolish the tax on incoming international telephone calls.

The PTA cancelled the agreement made with LDI operators on September 25. It was according to this agreement that international incoming calls were taxed. PTA officials said the decision was made in light of the court’s order.

The Lahore High Court (LHC) had earlier sought a reply from the PTA regarding the levy of an additional tax on incoming international telephone calls and had issued a stay order.

On October 1, the arrival of the International Clearing House (ICH), an administrative bureau initiated by the PTA, gave another rise to international calls.

Purportedly created to police grey traffic, the ICH and its new policies were enabling private sector players to form telecom cartels, resulting in exploitative monopolies that fly in the face of established deregulation policies.

The ICH was meant to streamline all incoming international traffic through a centralized gateway and LDI operators and share the revenues for international incoming traffic based on their current market share with fixed termination charges.

Competition Commission has expressed its concerns relating to implementation of ICH and has said that commission could litigate the matter if ICH is implemented. However, PTA – backed by Ministry of IT – went ahead with the plan and ICH was principally considered operational from October 1st.

According to estimates, there are almost seven million Pakistanis living abroad and monthly incoming international traffic to Pakistan is 1.5 billion minutes per month, which means overseas Pakistanis will have to pay between US $120 million to US $150 million extra to the PTA for calling their family back home.

21 COMMENTS

I know the full story. ICH is actually a huge scam to benefit foreign owned LDI companies and their investors which would result in outflow of billions of dollars from Pakistan destroy Pakistan’s precious foreign reserves and reducing the amount of remittance overseas Pakistani send to Pakistan .
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Long distance international licenses (LDI) were given to companies by PTA in 2004 to bring competition for PTCL, instead they all grouped together bribed out Politicians and Government Officials in PTA, MoIT or perhaps offered them share in their LDI companies and managed to form one single monopoly company called International Clearing House (ICH) and worked out a quota deal with PTCL under guidance from PTA/MoIT . Now just like before 2004, only PTCL handles all international calls , while Rest of the LDIs are doing nothing , they will just collect cheque as per their quota , amounting to billions each month from MoIT / PTA and send those billions in precious foreign exchange to their parent companies overseas. These extra billions is precious foreign reserve money from overseas Pakistanis which now instead of staying in Pakistan goes to these foreign companies
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If PTA / MoIT wanted to increase government revenue by increasing call rate , they would simply increase Tax (USF) payable by the LDIs . There was no need for grouping of LDIs into single company/consortium . The fact is forming of ICH will only bring benefits to the LDI operators as most of the money from price increase will go to these foreign own LDI Companies .
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Somebody must investigate how these LDIs managed to form an illegal consortium and why PTA , MoIT are supporting them despite objection from CCP. Why PTA/MoIT is being so generous by giving billions to these LDI operators? These LDI licenses were awarded as part of telecom deregulation to have competitive environment . The licenses have no such provision to group together to form one monopoly consortium nor fixing rate. Therefore licenses of LDI operators should be canceled for trying to do illegal activities , spreading corruption and damaging Pakistan .

Who cares about the hard earned money of Overseas Pakistanis and send back home Foreign exchange, while the Corrupt Mafia, in all our Govt./Semi Govt. Agencies and Politicians from President to Ministers and beurocrates are in full swing in our Country.
What our brother Saeed comments, is excellent indeed. ICH and LDI is playing their game of looting Foreign exchange of Pakistan and PTA and MOIT is getting its share from the pocket of Overseas Pakistanis.
Her taraf Chore he Chore and Dakoo Lutairay dhandanatay phir rahay haen, Allah hamaray Mulk-o-quom per Rehm farmaey. Amin.
KhShaikh

This is a great news for overseas pakistani,infact we all pakistani looking to high court and supreme court.in short time supreme court took historical decision.we proud our judiciary and looking forward for succes.
Pakistan politicians and burucracy has distroyed our dignity and privacy.Now we have lot of expectation from Ch.justice,Iftigkhar M choudhry that he give right dirction to the nation.Congratultion to all pakistanis those working a broad and they can come again near with families.Thank you Lahore high court.Pakistan zindabad.

Really its good news but the question is how long that will take to implementation – because normally in akistans things-matters like this take so long to implement. Court must check, and investigate this matter in Fact.